SMTA Dividend Type Payments

Although SMTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPIRIT MTA REIT to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:50 PM ET):

SPIRIT MTA REIT (SMTA)
Bid Ask Last Change Volume P/E Market Cap
11.28 11.32 11.30 +0.25 25K - 0.5B

SMTA Dividend-Like Income Using Covered Calls

With SMTA at 11.30, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.34 0.1
5% 0.57 0.2
10% 1.13 0.3

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.NBEV dividend
2.SPX dividend 7.MU dividend   2.CRON dividend
3.EEM dividend 8.FXI dividend   3.TLRY dividend
4.QQQ dividend 9.AMD dividend   4.UVXY dividend
5.PBR dividend 10.XLF dividend   5.ARWR dividend

Want more examples? SMSI Dividend | SMTC Dividend